Dollar Steadies Ahead of Fed Decision

2026-04-29 01:28 By Jam Kaimo Samonte 1 min. read

The US dollar index steadied around 98.6 on Wednesday after experiencing increased volatility earlier in the week, as markets positioned for the upcoming Federal Reserve policy meeting, which is expected to be Chair Jerome Powell’s final one before his term ends in May.

The Fed is broadly anticipated to keep interest rates unchanged, with investors closely watching how policymakers assess the economic impact of the Middle East conflict.

Several other major central banks, including those in the EU, the UK, and Canada, are also set to announce policy decisions this week, while the BOJ delivered a hawkish hold on Tuesday.

At the same time, stalled US-Iran negotiations and the continued closure of the Strait of Hormuz have intensified inflation concerns, supporting demand for the safe-haven dollar.

President Donald Trump was reportedly dissatisfied with Tehran’s latest proposal, insisting that nuclear-related issues be addressed from the outset of any agreement.



News Stream
Dollar Steadies Ahead of Fed Decision
The US dollar index steadied around 98.6 on Wednesday after experiencing increased volatility earlier in the week, as markets positioned for the upcoming Federal Reserve policy meeting, which is expected to be Chair Jerome Powell’s final one before his term ends in May. The Fed is broadly anticipated to keep interest rates unchanged, with investors closely watching how policymakers assess the economic impact of the Middle East conflict. Several other major central banks, including those in the EU, the UK, and Canada, are also set to announce policy decisions this week, while the BOJ delivered a hawkish hold on Tuesday. At the same time, stalled US-Iran negotiations and the continued closure of the Strait of Hormuz have intensified inflation concerns, supporting demand for the safe-haven dollar. President Donald Trump was reportedly dissatisfied with Tehran’s latest proposal, insisting that nuclear-related issues be addressed from the outset of any agreement.
2026-04-29
Dollar Strengthens on Middle East Uncertainty
The dollar index edged up to 98.7 on Tuesday, approaching a three-week high, as ongoing uncertainty in the Middle East and rising oil prices rekindled fears of an inflationary spiral. The White House said President Trump would address Iran’s proposal to reopen the Strait of Hormuz “very soon,” although the plan avoids tackling the nuclear issue until hostilities in the Gulf subside. Meanwhile, the Fed's two-day policy meeting begins today. Policymakers are widely expected to keep the federal funds rate unchanged, with no adjustments anticipated for the remainder of the year. The ECB and the BoE are also set to announce policy decisions, with money markets pricing in potential rate hikes as early as June. In Asia, the BoJ left rates unchanged, and Governor Ueda offered little guidance on the timing of future increases, weighing on the yen. The dollar posted its strongest gains against the euro, the pound, and the Australian dollar.
2026-04-28
Dollar Holds Decline on Diplomatic Push
The dollar index hovered around 98.5 on Tuesday after a sharp intraday drop in the prior session, as renewed diplomatic efforts to resolve the US–Iran conflict reduced demand for the safe-haven currency. Iran reportedly delivered a new proposal to the US through Pakistani mediators, offering to reopen the Strait of Hormuz if Washington lifts its blockade, though Tehran’s nuclear program remains a key sticking point in negotiations. Attention is also turning to the upcoming Federal Reserve policy meeting, where rates are widely expected to remain unchanged in what could be Jerome Powell’s final session as Fed chair. Fed nominee Kevin Warsh has emphasized policy independence, even as markets continue to price in a more aggressive easing cycle ahead. Investors are also awaiting policy decisions from other major central banks this week, including the ECB, BOE, and BOJ.
2026-04-28